Tech/IT business insurance costs vary significantly by coverage type, helping you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $27 for general liability to $98 for professional liability coverage.
How Much Does Tech/IT Business Insurance Cost?
Business insurance for tech companies starts at $27 per month, but your specific business details and coverage needs will determine your actual rate.
Discover cheap tech/IT business insurance below.
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Updated: August 19, 2025
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Key Takeaways
Tech/IT business insurance costs range from $27 to $98 monthly, with Professional Liability coverage representing the higher end of that range.
Your tech/IT insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable tech/IT business insurance costs.
Average Tech/IT Business Insurance Cost Overall
| BOP | $32 |
| General Liability | $27 |
| Professional Liability (E&O) | $98 |
| Workers' Comp | $27 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Tech/IT Business Insurance Cost for General Liability Coverage by State
Your tech/IT business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $23 monthly (versus the $27 national average), while Hawaii costs $32 monthly.
| Alabama | $26 |
| Alaska | $28 |
| Arizona | $25 |
| Arkansas | $25 |
| California | $30 |
| Colorado | $26 |
| Connecticut | $29 |
| Delaware | $28 |
| Florida | $29 |
| Georgia | $27 |
| Hawaii | $32 |
| Idaho | $25 |
| Illinois | $29 |
| Indiana | $26 |
| Iowa | $25 |
| Kansas | $26 |
| Kentucky | $25 |
| Louisiana | $32 |
| Maine | $23 |
| Maryland | $25 |
| Massachusetts | $28 |
| Michigan | $25 |
| Minnesota | $25 |
| Mississippi | $27 |
| Missouri | $26 |
| Montana | $26 |
| Nebraska | $25 |
| Nevada | $30 |
| New Hampshire | $26 |
| New Jersey | $30 |
| New Mexico | $27 |
| New York | $31 |
| North Carolina | $23 |
| North Dakota | $23 |
| Ohio | $25 |
| Oklahoma | $26 |
| Oregon | $25 |
| Pennsylvania | $31 |
| Rhode Island | $29 |
| South Carolina | $27 |
| South Dakota | $25 |
| Tennessee | $26 |
| Texas | $27 |
| Utah | $25 |
| Vermont | $25 |
| Virginia | $24 |
| Washington | $30 |
| West Virginia | $28 |
| Wisconsin | $26 |
| Wyoming | $25 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Tech/IT Business Insurance Cost for Workers’ Compensation Coverage by State
Your tech/IT business cost for workers' compensation varies by state. North Carolina offers the lowest rates at $24 monthly and Pennsylvania the highest at $32 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $27 |
| Alaska | $25 |
| Arizona | $26 |
| Arkansas | $26 |
| California | $30 |
| Colorado | $27 |
| Connecticut | $30 |
| Delaware | $29 |
| Florida | $29 |
| Georgia | $28 |
| Hawaii | $29 |
| Idaho | $26 |
| Illinois | $30 |
| Indiana | $27 |
| Iowa | $26 |
| Kansas | $26 |
| Kentucky | $26 |
| Louisiana | $31 |
| Maine | $24 |
| Maryland | $26 |
| Massachusetts | $29 |
| Michigan | $26 |
| Minnesota | $25 |
| Mississippi | $28 |
| Missouri | $27 |
| Montana | $27 |
| Nebraska | $26 |
| Nevada | $31 |
| New Hampshire | $27 |
| New Jersey | $31 |
| New Mexico | $27 |
| New York | $32 |
| North Carolina | $24 |
| Oklahoma | $25 |
| Oregon | $25 |
| Pennsylvania | $32 |
| Rhode Island | $30 |
| South Carolina | $28 |
| South Dakota | $25 |
| Tennessee | $27 |
| Texas | $28 |
| Utah | $26 |
| Vermont | $26 |
| Virginia | $25 |
| West Virginia | $29 |
| Wisconsin | $27 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Tech/IT Business Insurance Cost for Professional Liability Coverage by State
Like other insurance types, your cost for professional liability varies by state. The national average for E&O insurance is $98 monthly, with North Carolina offering the lowest rates at $85 and Pennsylvania the highest at $115 monthly.
| Alabama | $95 |
| Alaska | $89 |
| Arizona | $93 |
| Arkansas | $94 |
| California | $108 |
| Colorado | $96 |
| Connecticut | $105 |
| Delaware | $106 |
| Florida | $105 |
| Georgia | $101 |
| Hawaii | $103 |
| Idaho | $93 |
| Illinois | $109 |
| Indiana | $96 |
| Iowa | $92 |
| Kansas | $98 |
| Kentucky | $92 |
| Louisiana | $109 |
| Maine | $87 |
| Maryland | $93 |
| Massachusetts | $104 |
| Michigan | $93 |
| Minnesota | $92 |
| Mississippi | $99 |
| Missouri | $97 |
| Montana | $97 |
| Nebraska | $93 |
| Nevada | $112 |
| New Hampshire | $99 |
| New Jersey | $112 |
| New Mexico | $99 |
| New York | $113 |
| North Carolina | $85 |
| North Dakota | $85 |
| Ohio | $90 |
| Oklahoma | $91 |
| Oregon | $92 |
| Pennsylvania | $115 |
| Rhode Island | $109 |
| South Carolina | $103 |
| South Dakota | $92 |
| Tennessee | $96 |
| Texas | $98 |
| Utah | $95 |
| Vermont | $95 |
| Virginia | $90 |
| Washington | $110 |
| West Virginia | $105 |
| Wisconsin | $96 |
| Wyoming | $93 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Tech/IT Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for tech companies across states. Monthly premiums range from $28 in Maine to $38 in New York for the same coverage.
| Alabama | $32 |
| Alaska | $30 |
| Arizona | $30 |
| Arkansas | $31 |
| California | $36 |
| Colorado | $32 |
| Connecticut | $35 |
| Delaware | $35 |
| Florida | $34 |
| Georgia | $32 |
| Hawaii | $34 |
| Idaho | $30 |
| Illinois | $35 |
| Indiana | $32 |
| Iowa | $30 |
| Kansas | $31 |
| Kentucky | $29 |
| Louisiana | $36 |
| Maine | $28 |
| Maryland | $30 |
| Massachusetts | $34 |
| Michigan | $31 |
| Minnesota | $30 |
| Mississippi | $32 |
| Missouri | $32 |
| Montana | $32 |
| Nebraska | $31 |
| Nevada | $37 |
| New Hampshire | $32 |
| New Jersey | $37 |
| New Mexico | $32 |
| New York | $38 |
| North Carolina | $28 |
| North Dakota | $28 |
| Ohio | $30 |
| Oklahoma | $31 |
| Oregon | $30 |
| Pennsylvania | $36 |
| Rhode Island | $36 |
| South Carolina | $33 |
| South Dakota | $31 |
| Tennessee | $31 |
| Texas | $32 |
| Utah | $30 |
| Vermont | $31 |
| Virginia | $30 |
| Washington | $36 |
| West Virginia | $34 |
| Wisconsin | $32 |
| Wyoming | $29 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Tech/IT Business Insurance Cost
Insurance costs for your tech/IT business are based on several factors that insurers review to set premium rates. Understanding these factors will help you budget. We break down these factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Tech companies in major tech hubs face higher premiums because of increased liability risks and higher property values, while state-specific regulations create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single data breach or professional liability claim can substantially increase your general liability rates at renewal.
Employee Count and Payroll
Insurers calculate workers' comp premiums based on your total payroll and tech employee classifications. Adding developers, IT support staff or system administrators increases your payroll costs, since insurers calculate rates per dollar of wages paid.
Services offered
Different tech services carry varying risk levels that affect insurance costs. Software development, IT consulting, and data management services each present unique liability exposures. Companies offering cybersecurity services often face higher premiums than those providing basic IT support.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. For example, a solo IT consultant earning $80,000 annually will pay less than an IT services firm with $2 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive tech equipment requires higher coverage limits, increasing your premiums. A company with multiple servers, testing equipment, and specialized software will pay more for equipment coverage than one using basic computer hardware.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Tech/IT Business Insurance
Smart shopping and risk management strategies can lower your tech business insurance costs significantly. Our proven tips below show you how to reduce premiums now and build long-term savings.
- 1
Choose the right coverage types for your business
Understanding which types of business insurance your tech company needs prevents overpaying for unnecessary coverage. Tech businesses typically require cyber liability insurance to protect against data breaches and professional liability for software errors. Consider general liability for basic protection and property coverage for expensive equipment.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for identical coverage. Compare quotes from at least three insurers to find the best rates. Consider working with independent agents who specialize in tech industry coverage.
- 3
Bundle your coverage types
Insurance providers offer substantial discounts for bundled policies. Combining cyber liability, professional liability and general liability with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premiums. This approach works well for tech businesses with strong cash reserves that can handle larger out-of-pocket expenses for smaller claims.
- 5
Pay annually instead of monthly
Most insurers add processing fees for monthly payments. Paying your premium annually eliminates these fees and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your tech business grows. Review your policy annually to ensure coverage matches your current operations, especially as you add employees or expand your services.
Insurance for Tech/IT Business Cost: Bottom Line
Tech/IT business insurance costs range from $27 to $98 monthly, with your location, claims history and business size affecting your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Tech/IT Business Insurance Cost: FAQ
Business owners often ask about tech/IT company insurance costs, so we've compiled straightforward answers to the most common questions below.
What is the cheapest type of tech/IT business insurance?
Workers' compensation insurance costs $27 monthly, but only covers workplace injuries. Most tech/IT businesses need general liability coverage, which is tied with workers' comp at $27 per month. General liability protects against customer accidents and property damage.
How much can I save by bundling my tech/IT business insurance policies?
Bundling multiple policies through a single insurance carrier offers the most cost-effective solution. General liability insurance alone costs around $320 per year, but combining coverages can lead to significant discounts.
What factors make my tech/IT business insurance more expensive?
Tech companies in major hubs, with many employees and those offering cybersecurity often pay higher insurance costs. General liability insurance is typically the most budget-friendly option, with average monthly premiums of $27 for tech/IT businesses. This basic coverage protects against common workplace accidents and property damage.
Should I choose a $500 or $2,500 deductible for my tech/IT business insurance?
A higher deductible ($2,500) reduces your monthly insurance costs, but requires more cash reserves when filing claims. Consider your business's financial stability and claim frequency when deciding.
How much does workers' compensation cost for tech/IT businesses by state?
Workers' compensation rates for tech companies vary by state, ranging from $24 monthly in North Carolina to $32 monthly in Pennsylvania, with costs influenced by local regulations and risk factors.
Is business owner's policy (BOP) worth the extra cost for tech/IT companies?
A business owner's policy costs $32 per month on average for tech/IT companies. It bundles general liability, commercial property and business interruption coverage, offering better value than separate policies.
How often should I shop around for tech/IT business insurance quotes?
Annual insurance reviews during renewal time help secure better rates. Compare at least three insurers for the best savings, particularly when your business grows or changes services.
How We Determined Tech/IT Business Insurance Costs
We collected tech/IT business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small tech/IT businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the tech/IT industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.